Twitter raises a $1 Billion Credit Line from Banks ahead of IPO
Banks have provided a $1 billion credit line to Twitter that will help Twitter to manage its Initial public offering. The lenders include Goldman Sachs, Morgan Stanley and JPMorgan, reported Bloomberg.
Facebook obtained the unsecured line before it went public last year. The line was a fraction of the $8 billion.
Twitter has now followed the footsteps of Facebook. The unsecured line will help the company raise funds for unforeseen expenses if its trading debut gets delayed. The money otherwise can be used for acquisitions.
The acquisition of advertising startup MoPub is scheduled to get finalized by Twitter in November. In the first half of 2013, MoPub reported sales of $6.52 million, rising from $2.69 million for the whole of 2012, said Twitter in a regulatory filing on Tuesday.
More financial flexibility will be provided to the blurb-based business going into the highly anticipated IPO.
Just 3.25% of the money raised in the IPO is likely to be paid by the company to the banks. After Facebook, this will be the lowest rate for a technology company. Facebook paid 1.1% last may. It has also been revealed that the share deal is likely to progress in the next few weeks.
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